The Organisation for Economic Co-operation and Development (OECD) reported to the Committee that preliminary data it collected showed total Aid-for-Trade disbursements suffered a year-on-year fall of 4.7 per cent in real terms in 2021 for a total of USD 47.7 billion, a decline mainly due to inflation.

Nearly all the disbursed amounts (97 per cent) went towards building productive capacity and economic infrastructure, with Africa receiving 40 per cent of this assistance. In terms of project commitments, the decline in 2021 was 22 per cent. The OECD described this as significant compared to the substantial growth in commitments registered in previous years. The OECD added that it expects to find further fluctuations in Aid-for-Trade flows in 2022 due to the impact of the war in Ukraine.

The Least-Developed Countries Group of WTO members also noted a drop in Aid-for-Trade disbursements to its members and other low-income countries, from USD 15.6 billion in 2020 to USD 13.5 billion in 2021, which it said was regrettable.

The Asian Development Bank (ADB) reported on work undertaken to reduce the digital divide between developed and developing countries and to enhance knowledge sharing and communication. The Inter-American Development Bank updated the Committee on loan approvals aimed at building capacity in several Latin American countries as well as planned activities in the region.  

The European Bank for Reconstruction and Development (EBRD) noted it has strengthened the capacity of close to 100 local banks worldwide to offer trade finance and better support entrepreneurs through its trade facilitation programme. The World Bank underlined food insecurity, increasing poverty, reduced shared prosperity and learning challenges as developmental hurdles faced globally.  The World Bank also noted that it will be releasing a joint study with the WTO on services trade for development.

The United Nations Industrial Development Organization updated the Committee on the work of the interagency task force on financing for development, a follow-up to the Addis Ababa Action Agenda on the financing for development outcome. The United Nations Development Programme noted that it launched its food and agriculture commodity systems strategy in 2020 and has implemented its country support programme for assisting countries in achieving sustainable and resilient food systems.

The United Nations Conference on Trade and Development briefed the Committee on several capacity-building activities focused on e-commerce, including its Pacific digital economy programme.

The Enhanced Integrated Framework reported its support for integrating trade into five new national development plans, such as an e-commerce bill in Nepal and digital investment facilitation portal in Bhutan. The Standards and Trade Development Facility said it has partnered with the Inter-American Institute for Cooperation on Agriculture to carry out a regional workshop focusing on expanding paperless trade in Latin America and the Caribbean. It will be organizing an event in September for African countries to utilize good regulatory practice in the development and implementation of sanitary and phytosanitary measures.

The International Trade Centre (ITC) said it will offer trade-related technical assistance valued at USD 146 million in 2023, 75 per cent of which will go towards landlocked, small, vulnerable and conflict-afflicted countries. ITC has also launched SheTrades hubs in Mauritius and Bangladesh and will host the World Export Development Forum 2023 in Mongolia on 26-29 June under the theme “Diversify with Green Trade”. 

Several members shared their Aid-for-Trade experiences with the Committee. Japan mentioned several projects aimed at helping developing countries integrate into the multilateral trading system. It has provided training sessions for women entrepreneurs to enable them to participate in international trade in collaboration with ITC. 

The United States noted it provided USD 75 million in 2021 to support several trade facilitation activities addressing customs and logistics needs, among others, and that it remains committed to such assistance.

The WTO Secretariat also updated members on plans for the monitoring and evaluation exercise that will underpin the next Aid for Trade Global Review in mid-2024.

Workshop: “Boosting Agricultural Production and Agribusiness, Food Security, Livelihoods and Trade”

The workshop held on 11 May examined the role Aid for Trade plays in supporting agricultural production agribusiness, food security, livelihoods and trade. The panellists included representatives of international financial institutions, development agencies and country delegations, with the discussions focused on policy perspectives and practical experiences at a global, regional and national level.

The ADB highlighted plans to provide USD 14 billion over 2022-2025 to address regional food security issues while the EBRD said it has allocated EUR 2 billion to improve agribusiness resilience in Ukraine and neighbouring countries. The International Fund for Agricultural Development said it launched a Crisis Response Initiative to protect the livelihood of small-scale producers from recent shocks.

The important role transfer of technology plays in supporting agricultural production was highlighted by several panellists. The African Development Bank shared successes attained through its Technologies for African Agricultural Transformation initiative. The Republic of Korea said that it assisted 24 African states across the continent through the Korea-Africa Food and Agriculture Cooperation Initiative, including in rice production. Brazil also emphasized transfer of technology as a key facet of its South-South assistance.

Climate change was identified as a key driver of food insecurity, with the increased frequency of drought and rainfall events, coupled with rising atmospheric temperatures, influencing agricultural yield and productivity. Private sector contribution, especially in developing agribusiness, was also a key theme during discussions.

Panellists also called attention to the importance of enabling gender equality provisions in long-run structural support mechanisms. USAID will prioritize women-owned micro, small and medium-sized enterprises to help improve food safety management systems through a partnership with the Food Safety Initiative. The World Bank observed that its Social Protection Support to Food Security delivers a strong gender commitment, whereby 52.7 per cent of beneficiaries are women.

Further details on the event, including speakers presentations and audio recording, can be accessed on the WTO webpage.